Enlarging Access to Business Loans through WCGS

Mr Hamid, Dato Kamal, Datuk Dr Denison & Dato Jaspal at the inital meeting

On hearing the announcement of the Federal Government allocation of RM 3 billion as Working Capital Guarantee Scheme (WCGS), the Taskforce secretariat contacted PROKHAS. This is a special effort in the Tenth Malaysia Plan to enhance access to financing for SME companies.

Taskforce secretary Datuk Dr Denison Jayasooria and Taskforce member Dato Jaspal Singh visited PROKHAS (a wholly owned company of the Ministry Finance) on Jan 14, 2011 to gather more information and details. They met up with Dato Kamal Mohd Ali, the General Manger and Mr Hamid Mohd Noor, the Assistant General Manager at their office at Bangunan Setia 1, Bukit Damansara, KL

In the course of the discussion we gathered the following key details:-

• Under the 10^th MP, RM 3.0 billion is allocated in this guarantee scheme. Of this RM1.5 billion is reserved for Bumipura companies and the other RM1.5 billion for non Bumiputera companies
• The commencing period is from Jan 2, 2011 till Dec 31, 2011 or upon full subscription of the scheme limit which ever is earlier.
• The financing limit is from a minimum of RM 50k to a maximum of RM5 million
• The financing tenure is 5 years
• The guarantee cover is 70% of financing facility for financing between RM50K to less than RM2.0 million and 50% of financing for financing from RM2.0 million to RM5.0 million
• The loan is administered by participating financial institutions

Taskforce secretariat agreed with the cooperation of PROKHAS :-

• To host a follow up discussion with two or three participating banks, Bank Negara and Ministry of Finance to formulate a strategy to ensure Indian participation in the scheme
• To discuss a policy proposal of reserving a certain percentage of the non bumi allocation for Malaysian Indians
• To host a meeting on Jan 28, 2011 at 10am at PROKHAS. Taskforce will invite MoF, Bank Negara & a number of Indian business organizations. PROKHAS will invite a number of the participating financial institutions.

For more details please visit: http://www.prokhas.com.my/